Best MSP M&A Targets for Private Equity: The Data-Driven Clues

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Ice hockey legend Wayne Gretzky once famously defined what made him such a great player: “I skate to where the puck is going, not where it has been.”

To help private equity firms skate to the proverbial “MSP Puck,” FOCUS Investment Banking’s Managed Service Provider (MSP) Team has created the first and only predictive “signal-driven” custom scoring of the top 1,138 MSP targets that appear on the most prominent industry lists (MSP 501, CRN 500, ChannelE2E Top 100 Vertical, Inc. 5000 – IT Management and/or Redmond Channel Partners, Microsoft’s Top 350). 

Our proprietary algorithm looks for demonstrative organic growth “signals” that influence a company’s rank, including: 

  1. Growth intent (e.g., % change of new job postings on LinkedIn, Indeed and Glassdoor)
  2. Employee count (12 months % growth rate)
  3. Web traffic (12 months Alexa rank % change)

The onus is on modern dealmakers to differentiate themselves and position their firms for growth by conceiving “New School” approaches to help their clients find and create exceptional assets—and close deals.

FOCUS believes its research will shine a well-deserving light on MSP founders and CEOs (and their respective teams) and make it easier for them to access private equity capital to fuel even more growth.

Company List Overview

Announcing the “MSP Market Maker Unicorns” for 2022

FOCUS has risen to the occasion by creating a list of “MSP M&A Unicorns,” which it believes will provide outsized returns to MSP Founder/CEOs and their private equity investors by mining the predictive growth “signals” described above. Today we are announcing the “Second 50” Ranking for 2022:

MSP Market Maker Unicorns – “Second 50”

Ranking Informal Name City State
51 Mytech Partners Saint Paul MN
52 Helion Technologies Lutherville  MD
53 Integrated IT Solutions Milford MA
54 Applied Tech Solutions Madison WI
55 AT-NET Services Charlotte NC
56 Innovien Solutions Atlanta GA
57 Hub Technical Services South Easton MA
58 ComputerSupport Chelmsford Center MA
59 NENS Lowell MA
60 Merit Technologies Greenville SC
61 GRIT Technologies Clinton Township MI
62 Forthright Technology Partners Hollywood FL
63 Iuvo Technologies Westford MA
64 Lantium Blue Bell PA
65 E-N Computers Waynesboro VA
66 Netrix IT Saint Paul MN
67 ASi Networks San Dimas CA
68 ITPartners+ Grand Rapids MI
69 Revel Technology Houston TX
70 Salvus TG Lee’s Summit MO
71 Veracity Technologies Hopkins MN
72 Syand Burnsville MN
73 DLC Technology Solutions Marlton NJ
74 Bell Techlogix Indianapolis IN
75 Expedient Pittsburgh PA
76 Systems Engineering Portland ME
77 Cerium Networks Spokane WA
78 PEI Boulder CO
79 Safety Net Traverse City MI
80 IntegraONE Allentown PA
81 iCorps Technologies Woburn MA
82 Kinettix Cincinnati OH
83 Solutions II Littleton CO
84 TechMD Santa Ana CA
85 CyberlinkASP Technology Dallas TX
86 Envision Technology Advisors Pawtucket RI
87 Texas Systems Group Austin TX
88 Magnitech Naperville IL
89 Adopt Technologies Phoenix AZ
90 Method Technologies Cypress CA
91 VirtuIT Systems Nanuet NY
92 Vector Choice Technology Solutions Duluth GA
93 Radcomp Technologies White Salmon WA
94 PICS ITech Mount Holly NJ
95 Nerds Support Miami FL
96 A Couple Of Gurus Minneapolis MN
97 DEVsource Murray KY
98 Networking Technologies + Support Midlothian VA
99 PSM Chicago IL
100 Wheelhouse IT Fort Lauderdale FL

 

If you’re looking for the Top 50 unicorns, that list has been reserved for new FOCUS buy-side clients who are seeking:

About the FOCUS MSP Team

In addition to pioneering the first and only predictive “signal-driven” custom scoring of the top 1,138 MSP targets, no investment bank has been more active or aggressive in serving the MSP market than FOCUS Investment Banking.

For example, FOCUS served as M&A advisor to five of the 10 MSP platforms that were established in 2020 and announced by ChannelE2E (see 2020 MSP & Technology M&A List).

Most recently we have served as catalyst for, and exclusive financial advisor on, MSP/MSSP transactions with 18 legendary MSP Founder/CEO/President references including: Tom Andrulis, Rashaad Bajwa, Kevin Blake, Willis Cantey, Steven Cariglio, Kevin Cook, Brian Desrosier, Jim Kennedy, Buddy Martin, Donald C. Monistere, Karl Muehlberger, Eric Noonan, Edward M Reade, David Robinson, Tony Schafer, Jake Spanberger, Mohit ‘Mo’ Vij and Mike Williams.  

These deals resulted in nine MSPs becoming newly-minted PE-backed platforms, with five more currently under Letters of Intent.

For more information, please contact FOCUS Managing Director and MSP Team Leader Abe Garver at [email protected].


By Abe Garver, MSP team leader & managing director at FOCUS Investment Banking. Read more guest blogs from FOCUS hereRegularly contributed guest blogs are part of ChannelE2E’s sponsorship program.

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